LIXIL and GROHE Group to Jointly Acquire Stake in Watertech and
Sanitaryware Clusters in DAWN Ltd.

- LIXIL to become one of South Africa’s leading suppliers of sanitary
fittings-

July 02, 2014 05:26 AM Eastern Daylight Time

TOKYO--(BUSINESS WIRE)--LIXIL Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Yoshiaki
Fujimori), a global leader in the housing products and building
materials industry, and GROHE Group S.à r.l. (Headquarters: Luxembourg;
CEO and Chairman: David Haines), LIXIL-affiliate company, today
announced that they had agreed to acquire, via a newly established joint
venture, 51% of the shares of watertech and sanitaryware clusters of
Distribution & Warehousing Network Limited (Headquarters: Johannesburg,
South Africa; President: Derek Tod; hereinafter “DAWN”). The acquisition
based on this agreement is expected to be completed in autumn 2014.

DAWN’s watertech and sanitaryware clusters have annual gross sales of
about 110 million euros (about 15.4 billion JPY, 1 euro =140 JPY)
attaining a growth rate of about 10% last fiscal year, and it holds a
major share of South Africa’s watertech and sanitaryware market.

The joint venture agreement will make LIXIL one of the leading suppliers
of sanitary fittings in South Africa. GROHE gains production facilities
in South Africa and will further expand its distribution network and
strengthen business activities in Africa.

Yoshiaki Fujimori, President and CEO of LIXIL, 43.75% owner of GROHE
said "Expansion in emerging markets, especially Africa, is consistent
with the strategy of LIXIL Group".

The LIXIL Group declared its goal of “becoming a comprehensive housing
solutions provider targeting the global market” in its Medium-term
Management Vision announced in May 2011, and it has been expanding its
business to achieve growth and expansion on a global scale. This
transaction opens the way for GROHE to successfully continue its
long-term growth strategy with partner LIXIL at its side.

About Distribution & Warehousing Network Limited

DAWN is listed in Johannesburg Stock Exchange (JSE). The Group
manufactures and distributes quality branded hardware, sanitaryware,
plumbing, kitchen, engineering and civil products through a national,
strategically positioned branch network in South Africa, as well as in
selected countries in the rest of Africa and Mauritius. The brands
acquired through the new agreement include COBRA, ISCA, VAAL, LIBRA and
PLEXICOR. For more information, please visit: http://www.dawnltd.co.za/

About GROHE Group S.à r.l.

GROHE is one of the world’s leading providers of sanitary fittings
operating over 130 countries. Under the global GROHE brand for sanitary
products and systems, GROHE sets a high standard in quality, design,
technology and responsibility, providing water to perfection. With the
Joyou brand, the GROHE Group covers the fast growing Chinese market.
Staffed by about 9,300 employees, it offers brands differing by price
range and design: GROHE®, GROHE Professional®, GROHE SPA®, and Joyou®.
Both companies became equity method affiliate companies of the LIXIL
Group as a result of the January 2014 joint acquisition of 87.5% of
GROHE’s shares by the LIXIL Group and the Development Bank of Japan.

Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE
Code: 5938) is a listed holding company posting 1.6 trillion JPY in
consolidated sales in FY March 2014. The Group is involved in a broad
spectrum of housing-related businesses, ranging from the manufacture and
sales of building materials and housing equipment to the operation of
home centers and a network of homebuilding franchises.

LIXIL Corporation, a consortium of building material companies, is a
core enterprise of the Group, generating 80% of consolidated sales. The
largest housing and building materials company in Japan with a vast and
unique business portfolio, a 55% share in exteriors, 50% share in
housing sashes and doors, 50% share in building sashes and shutters and
40% share in sanitary ware. LIXIL is also a leading brand such as in
tiles, unit bathrooms and kitchen systems.

Launched in April 2011 under its present structure and name, LIXIL has
been active in strategic acquisitions and partnerships in order to
fortify and accelerate its growth globally. It currently operates in
more than 30 countries through various brands offering a broad lineup of
products and services. Permasteelisa, Gartner and Shanghai Meite, for
example, spearhead our project business (building materials and curtain
wall), while LIXIL, American Standard, Inax and Tostem brands provide an
impressive product portfolio including kitchen units, bathroom fixtures,
windows and doors.